In my opinion I think Bombardier and Embraer are guilty as charged because both accuse each other of what they are individually guilty of. In that they both had government help in manufacturing aircraft whether it was a low interest federal loan or a subsidy, they are both guilty of breaching WTO subsidy practices. Although to their credit as smart businesses, subsidies are an important form of government intervention for aircraft manufacturers to meet deadlines. Unjustly though taxpayers are forced to gamble on the success of the subsidized projects. According to Marcio Chalegre Coimbra - Academia.edu. (n.d.). In my opinion I think both Bombardier and Embraer should collectively complain to the WTO to lift some of those subsidy practices. Because the legimitacy of subsidies lies only in that other countries are also subsidizing their own companies. Both of these manufacturers are competitive firms that demand government help only because the other is receiving government help as well. According to Marcio Chalegre Coimbra - Academia.edu. (n.d.). Both Embraer and Bombardier have been ruled against by the WTO in breaking subsidy practices. Which can only mean that for them to stay competitive and profitable they must continue to take low interest federal loans and subsidy’s to remain in business and meet those deadlines, which are hard to make without government intervention. Canada has already been awarded the right still unexercised to apply $1.4 billion in trade sanctions against Brazil over a seven-year period. According to Business - CBC News. Instead of affecting economic trade between the two countries, both Embraer and Bombardier should agree to a fair competitive business practice.

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DigitalCollections@SIT
Independent Study Project (ISP) Collection
SIT Study Abroad
10-1-2009
Who’s to Blame?: An Analysis of Agricultural
Subsidies and Their Effects on Development
Jared Baragar
SIT Study Abroad
Follow this and additional works at: http://digitalcollections.sit.edu/isp_collection
Part of the Agricultural and Resource Economics Commons
Recommended Citation
Baragar, Jared, "Who’s to Blame?: An Analysis of Agricultural Subsidies and Their Effects on Development" (2009). Independent Study
Project (ISP) Collection. Paper 778.
http://digitalcollections.sit.edu/isp_collection/778
This Unpublished Paper is brought to you for free and open access by the SIT Study Abroad at DigitalCollections@SIT. It has been accepted for
inclusion in Independent Study Project (ISP) Collection by an authorized administrator of DigitalCollections@SIT. For more information, please
contact digitalcollections@sit.edu.
Who’s to Blame?: An Analysis of Agricultural Subsidies and their Effects
on Development
By Jared Baragar
Yale University
Political Science major; focus on International Relations
November 25, 2009
Fall 2009; Switzerland: International Studies, Institutions, and Social Justice
Independent Study Project (ISP)
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